Section 5

Credit Plan Master

Objectives

Upon completion of this section, you will be able to:

 State the purpose of the Credit Plan Master

 Explain the role of Credit Plan Masters in generating credit plan segments on
accounts
 List available Plan Types
 Identify interest-related fields on the Credit Plan Master
 Identify authorization parameters on the Credit Plan Master
 Identify deferment options on the Credit Plan Master
 List available Payment Types and distinguish between those that require a Repayment
Table and those that do not
 List the include/exclude controls that limit participation in a plan
 Identify plan priorities for payment application and explain their relationship to
payment application controls on the Logo record
CMS 8.0

THE PURPOSE OF THE CREDIT PLAN MASTER

The Credit Plan Master defines a credit offering that you make to your customers.
Using Credit Plan Master records, you can establish a credit plan (or plans) for
each type of monetary transaction that you process: retail purchases, cash
advances, balance transfers, access checks, or closed-end loans. A Credit Plan
Master is a secondary control record at the organization level. You can establish
as many as 99,998 Credit Plan Masters per organization.

MAJOR FEATURES OF A CREDIT PLAN MASTER

 Plan type and related fields  Payment type and repayment table
 Interest-related fields  Insurance options
 Authorization parameters  Payment application priorities
 Deferment options

MULTIPLE CREDIT PLAN SEGMENTS ON A SINGLE ACCOUNT

A single account may participate in multiple credit plans at the same time. For
example, a typical bankcard customer may routinely use his or her card for both
retail purchases and cash advances and may occasionally take advantage of a
balance transfer offer.
 Each plan on the account (retail purchase, cash advance, etc.) can have its own
interest rate and its own repayment terms that are different from the rates and
terms of the other plans.
 In CMS, a single account can have as many as 99 credit plan segments on it.

THE ROLE OF CREDIT PLAN MASTERS IN GENERATING CREDIT PLAN SEGMENTS

A front-end system like TRAMS can be used to edit and reformat transactions
destined for posting to cardholder accounts in CMS. As part of its output
processing, TRAMS can add valid Credit Plan Master numbers to transactions
prior to routing the transactions to CMS.
 When a sale transaction enters CMS with a valid Credit Plan Master number
on it, the system attempts to post the transaction to an existing credit plan
segment on the account.
 If no existing plan segment matches the plan number, CMS generates a new
plan segment for that number.
 If the plan segment already exists but the Credit Plan Master specifies no
additional sales, CMS generates a new plan segment having the same number
and a sequence number.

Section 5 - 2
 Credit Plan Master

ADDING A CREDIT PLAN MASTER RECORD

Use the Locate screen in maintenance mode (ARMC00) or inquiry mode

(ARQC00) to identify an existing Credit Plan Master record that you want to
modify or query. Use the Locate screen in add mode (ARAC00) to enter
identification numbers for a new record that you want to add. In add mode, you
can copy an existing record to use as a model for the new record.

ARMC PAGE 00

ARMC ( ) USER DEFINED TITLE PAGE 00 08/26/1999

CREDIT PLAN MASTER 10:04:41

ORGANIZATION ( 100 ) PLAN NBR ( 00008 )

PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

Section 5 - 3
CMS 8.0

USER-DEFINED FIELDS

On page 01 of the Credit Plan Master record, you can enter a user-defined
DESCRIPTION of the credit plan. You can also type a user-defined PLAN ID that
identifies the promotional product associated with the plan and a user-defined
PRODUCT CODE. These values default to corresponding fields on the credit plan
segments generated by this Credit Plan Master. Six USER fields on page 01 can
hold additional custom information.

ARMC PAGE 01

ARMC ( ) USER DEFINED TITLE PAGE 01 08/26/1999

CREDIT PLAN MASTER 10:16:34
ORG 100 PLAN NBR 10002 DATE LAST MAINT 06/28/1999
DESCRIPTION ( RETAIL PURCHASE PLAN )
PLAN TYPE ( R ) REQUIRED DOWN PMT ( A ) ( 0000000 )
RATE TBL OCCUR ( 01 ) MULTIPLE SALES ( Y )
BEGINNING DATE ( ) ENDING DATE ( )
BALANCE TRANSFER TYPE ( N ) INTEREST TABLE OVRRDE ( 001 )
GRACE DAY BALANCE ( Y ) ITO EXP ( M 001 ) ( )
MIN SALE ( 000000000 ) MAX SALE ( 000000000 )
POSTING INDICATOR ( 0 )
DEFER INT ( 000 ) ( 0 ) ( ) ( 0 ) PLAN ID ( 654 )
DEFER INS ( 000 ) ( 0 ) ( ) ( 0 ) RECORD COUNT IND ( 05 )

DFR BILL ( 000 ) ( 0 ) ( ) PRODUCT CODE ( 65498 )

DEFER PMT ( 000 ) ( 0 ) ( )
CANCEL F / LVL / LTR / PLAN /METHOD ( 0 ) ( 0 ) ( ) ( 00000 ) ( 0 )
EXPR / LTR / PLAN / METHOD ( 0 ) ( ) ( 00000 ) ( 0 )
USER CD 1 ( 000 ) USER CD 2 ( 000 ) USER CD 3 ( 000 )
USER CD 4 ( 00000 ) USER CD 5 ( 00000 ) USER CD 6 ( 00000 )
PAYMENT OPTIONS - PAYMENT TYPE ( C )
CONSOLIDATED PAYMENT ( N )
CONSOLIDATED STATEMENT ( N ) CONTROLLING PLAN ( 00000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

Section 5 - 4
 Credit Plan Master

PLAN TYPE AND RELATED FIELDS

One page 01 of the Credit Plan Master record, there are three fields that define
how a credit plan functions. The fields are:
 PLAN TYPE

 MULTIPLE SALES

 BALANCE TRANSFER TYPE

ARMC PAGE 01

ARMC ( ) USER DEFINED TITLE PAGE 01 08/26/1999

CREDIT PLAN MASTER 10:16:34
ORG 100 PLAN NBR 10002 DATE LAST MAINT 06/28/1999
DESCRIPTION ( RETAIL PURCHASE PLAN )
PLAN TYPE ( R ) REQUIRED DOWN PMT ( A ) ( 0000000 )
RATE TBL OCCUR ( 01 ) MULTIPLE SALES ( Y )
BEGINNING DATE ( ) ENDING DATE ( )
BALANCE TRANSFER TYPE ( N ) INTEREST TABLE OVRRDE ( 001 )
GRACE DAY BALANCE ( Y ) ITO EXP ( M 001 ) ( )
MIN SALE ( 000000000 ) MAX SALE ( 000000000 )
POSTING INDICATOR ( 0 )
DEFER INT ( 000 ) ( 0 ) ( ) ( 0 ) PLAN ID ( 654 )
DEFER INS ( 000 ) ( 0 ) ( ) ( 0 ) RECORD COUNT IND ( 05 )

DFR BILL ( 000 ) ( 0 ) ( ) PRODUCT CODE ( 65498 )

DEFER PMT ( 000 ) ( 0 ) ( )
CANCEL F / LVL / LTR / PLAN /METHOD ( 0 ) ( 0 ) ( ) ( 00000 ) ( 0 )
EXPR / LTR / PLAN / METHOD ( 0 ) ( ) ( 00000 ) ( 0 )
USER CD 1 ( 000 ) USER CD 2 ( 000 ) USER CD 3 ( 000 )
USER CD 4 ( 00000 ) USER CD 5 ( 00000 ) USER CD 6 ( 00000 )
PAYMENT OPTIONS - PAYMENT TYPE ( C )
CONSOLIDATED PAYMENT ( N )
CONSOLIDATED STATEMENT ( N ) CONTROLLING PLAN ( 00000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

Section 5 - 5
CMS 8.0

RELATED FIELDS
PLAN TYPE Code that identifies the type of credit plan. This value defaults to
the Credit Plan Segment records (PLAN TYPE on ARMA01) for
credit plans generated by the Credit Plan Master record. The
values are:
A = Access checks (cash plan)
B = Balance transfers (retail plan)
C = Cash plan
K = Access checks (retail plan)
L = Closed-end installment loan (loan plan)
R = Retail plan (Default)
T = Balance transfers (cash plan).

 When adding a new Credit Plan Master record, the PLAN TYPE
field is open for input only until the next daily run. After the daily
run, this field cannot be changed on a Credit Plan Master
record.

MULTIPLE SALES Code that indicates whether each sales transaction associated with
this Credit Plan Master record generates a new Credit Plan
Segment record or is added to an existing Credit Plan Segment
record. The value in this field defaults to Credit Plan Segment
records (ADD ON FLAG on ARMA05). The values are:
Y = Yes, add-on sales are allowed. Add
subsequent sales to the same Credit Plan
Segment record. (Default)
N = No, add-on sales are not allowed. Do not add
subsequent sales to the same Credit Plan
Segment record. If multiple sales post on the
same effective date, however, generate one
Credit Plan Segment record that includes all
sales that post on the same date.
I = Generate a new Credit Plan Segment record
for each sale that posts on any date.

 This field has no impact on authorizations.

Section 5 - 6
 Credit Plan Master

BALANCE Code that indicates whether the Interest Table Override (ITO) that
TRANSFER TYPE sets a special interest rate for balance transfer credit plans can be
extended, not extended, or is in effect until a specific date. This
field is required for balance transfer credit plans (PLAN TYPE on
ARMC01 is B or T). For all other credit plan types, this field
defaults to N and cannot be modified. The values are:
E = Extend ITO number of months. When the
initial transaction posts, CMS sets the number
of ITO months for the credit plan (BAL XFR MO
REM on ARMA05) equal to the number of
months defined in the Credit Plan Master
record (ITO EXP on ARMC01).
When additional transactions post to the
credit plan, CMS resets the number of ITO
months in the credit plan equal to the number
of months defined in the Credit Plan Master
record. The number of months in the ITO EXP
field on ARMC01 must be greater than zero.
The MULTIPLE SALES field on ARMC01 must
be Y (Add-on sales allowed).
N = Do not extend ITO number of months. When
the initial transaction posts, CMS sets the
number of ITO months for the credit plan
(BAL XFR MO REM on ARMA05) equal to the
number of months defined in the Credit Plan
Master record (ITO EXP on ARMC01).
Additional transactions do not post to the
same credit plan. CMS does not reset the
number of ITO months in the credit plan. The
number of months in the ITO EXP field on
ARMC01 must be greater than zero. The
MULTIPLE SALES field on ARMC01 must be N
(Add-on sales not allowed). (Default)

Section 5 - 7
CMS 8.0

S = Specify an ITO ending date. When the initial

transaction posts, CMS sets the expiration
date of the ITO (BAL XFR EXP on ARMA05)
equal to the expiration date defined in the
Credit Plan Master record (ITO EXP on
ARMC01). Additional transactions that post
to the same credit plan use the same
expiration date. The date in the ITO EXP field
on ARMC01 must be valid. The MULTIPLE
SALES field on ARMC01 must be Y (Add-on
sales allowed).
On the statement cycle immediately
following the ITO expiration date, CMS
resets the ITO on the Credit Plan Master
record to zero (INTEREST TABLE OVERRDE on
ARMC01), resets the ITO on the credit plan
to zero (ITO OVERRIDE on ARMA04), and
resets the MULTIPLE SALES field on ARMC01
to N (Add-on sales not allowed). This
prevents additional balance transfers from
posting to the credit plan.

Notes

Section 5 - 8
 Credit Plan Master

INTEREST CONTROL OPTIONS

On the Credit Plan Master record, there are five fields that define how interest is
processed. The fields are:
 RATE TBL OCCUR

 INTEREST TABLE OVERRDE

 GRACE DAY BALANCE

 ITO EXP

 RECORD COUNT IND.

ARMC PAGE 01

ARMC ( ) USER DEFINED TITLE PAGE 01 08/26/1999

CREDIT PLAN MASTER 10:16:34
ORG 100 PLAN NBR 10002 DATE LAST MAINT 06/28/1999
DESCRIPTION ( RETAIL PURCHASE PLAN )
PLAN TYPE ( R ) REQUIRED DOWN PMT ( A ) ( 0000000 )
RATE TBL OCCUR ( 01 ) MULTIPLE SALES ( Y )
BEGINNING DATE ( ) ENDING DATE ( )
BALANCE TRANSFER TYPE ( N ) INTEREST TABLE OVRRDE ( 001 )
GRACE DAY BALANCE ( Y ) ITO EXP ( M 001 ) ( )
MIN SALE ( 000000000 ) MAX SALE ( 000000000 )
POSTING INDICATOR ( 0 )
DEFER INT ( 000 ) ( 0 ) ( ) ( 0 ) PLAN ID ( 654 )
DEFER INS ( 000 ) ( 0 ) ( ) ( 0 ) RECORD COUNT IND ( 05 )

DFR BILL ( 000 ) ( 0 ) ( ) PRODUCT CODE ( 65498 )

DEFER PMT ( 000 ) ( 0 ) ( )
CANCEL F / LVL / LTR / PLAN /METHOD ( 0 ) ( 0 ) ( ) ( 00000 ) ( 0 )
EXPR / LTR / PLAN / METHOD ( 0 ) ( ) ( 00000 ) ( 0 )
USER CD 1 ( 000 ) USER CD 2 ( 000 ) USER CD 3 ( 000 )
USER CD 4 ( 00000 ) USER CD 5 ( 00000 ) USER CD 6 ( 00000 )
PAYMENT OPTIONS - PAYMENT TYPE ( C )
CONSOLIDATED PAYMENT ( N )
CONSOLIDATED STATEMENT ( N ) CONTROLLING PLAN ( 00000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

RELATED FIELDS
RATE TBL Rate Table Occurrence Indicator (RTOI) that identifies which one
OCCUR of the 12 Interest Tables on the Processing Control Table (PCT) to
assign to credit plans generated by this Credit Plan Master record.
The values are 01–12. The default is 01. The value in this field
defaults to the Credit Plan Segment record (RTOI on ARMA05).

Section 5 - 9
CMS 8.0

INTEREST TABLE Identification number of the Interest Table used to calculate

OVERRDE interest for credit plans generated by this Credit Plan Master
record. If usury limits defined in a Usury Table and the interest
rates are above or below the usury limit for the RESIDENCE ID
(retail) or the ISSUANCE ID (bankcard), the interest is based on the
default value in the Usury Table. The values are:
000 = No ITO in effect (Default)
001-098 = Interest Table number
999 = Do not charge interest on balances in
this credit plan (interest-free).

 The Interest Table number entered in the INTEREST TABLE

OVRRDE field is not verified for validity. If the number is invalid,
the system uses the plan's default Interest Table as specified
by the RATE TBL OCCUR field. The ITO defined in this field is
defaulted to each plan segment that is created using this Credit
Plan Master and the special interest rate becomes effective
immediately for the plan segment.

ITO EXP Three-part field that specifies when the Interest Table Override
(ITO) expires. The first part of this field is a code that indicates
whether the ITO expires after a specified number of days or
months. The values are:
D = Days (Default)
M = Months.

The second part of this field identifies the specific number of days
or months. The default is 000.

The third part of this field identifies a specific expiration date for
the ITO.

 If you indicate days or months in the first part of this field, you
must enter the specific number of days or months in the second
part of this field and the date must be blank. Or, you can
indicate a specific date in the third part of this field. You cannot
place values in all three parts of this field.

 CMS removes the ITO from the credit plan segment once the
ratification is completed and after the number of days or
number of months have elapsed or after the expiration date has
been reached. When the ITO expires, CMS calculates interest
using the plan’s default interest table.

Section 5 - 10
 Credit Plan Master

 Although most commonly used on a balance transfer type plan,

an ITO can be used to offer an introductory (“teaser”) rate on a
standard retail purchase or cash advance plan as well

GRACE DAY Code that determines whether CMS waives the interest if the
BALANCE beginning plan balance is paid in full during the grace period. The
grace days is specified on the Account Control Table (ARMY).
The values are:
N = If the beginning balance is paid in full within
the grace days period, CMS does not waive
interest on this plan segment
Y = If the beginning balance is paid in full within
the grace days period, CMS waives interest
on this plan. (Default)

 The ACCT GRACE DAY BAL field on the Account Control Table
can be used to override the GRACE DAY BALANCE field on the
Credit Plan Master.

RECORD COUNT Number of rate history records that CMS maintains for credit
IND plans generated by the Credit Plan Master record. For each rate
history record, CMS maintains 12 rate history occurrences, or rate
changes, on the Credit Plan Segment record (CURRENT RATES on
ARMA02). The values are 00–05.

Example: If this value is 03, CMS stores 36 rate history

occurrences, or rate changes, on the Credit Plan Segment record
(ARMA02).

Section 5 - 11
CMS 8.0

AUTHORIZATION PARAMETERS

There are five fields on the Credit Plan Master record that control the
authorization parameters. The fields are:
 REQUIRED DOWN PMT

 BEGINNING DATE

 ENDING DATE

 MIN SALE

 MAX SALE.

ARMC PAGE 01

ARMC ( ) USER DEFINED TITLE PAGE 01 08/26/1999

CREDIT PLAN MASTER 10:16:34
ORG 100 PLAN NBR 10002 DATE LAST MAINT 06/28/1999
DESCRIPTION ( RETAIL PURCHASE PLAN )
PLAN TYPE ( R ) REQUIRED DOWN PMT ( A ) ( 0000000 )
RATE TBL OCCUR ( 01 ) MULTIPLE SALES ( Y )
BEGINNING DATE ( ) ENDING DATE ( )
BALANCE TRANSFER TYPE ( N ) INTEREST TABLE OVRRDE ( 001 )
GRACE DAY BALANCE ( Y ) ITO EXP ( M 001 ) ( )
MIN SALE ( 000000000 ) MAX SALE ( 000000000 )
POSTING INDICATOR ( 0 )
DEFER INT ( 000 ) ( 0 ) ( ) ( 0 ) PLAN ID ( 654 )
DEFER INS ( 000 ) ( 0 ) ( ) ( 0 ) RECORD COUNT IND ( 05 )

DFR BILL ( 000 ) ( 0 ) ( ) PRODUCT CODE ( 65498 )

DEFER PMT ( 000 ) ( 0 ) ( )
CANCEL F / LVL / LTR / PLAN /METHOD ( 0 ) ( 0 ) ( ) ( 00000 ) ( 0 )
EXPR / LTR / PLAN / METHOD ( 0 ) ( ) ( 00000 ) ( 0 )
USER CD 1 ( 000 ) USER CD 2 ( 000 ) USER CD 3 ( 000 )
USER CD 4 ( 00000 ) USER CD 5 ( 00000 ) USER CD 6 ( 00000 )
PAYMENT OPTIONS - PAYMENT TYPE ( C )
CONSOLIDATED PAYMENT ( N )
CONSOLIDATED STATEMENT ( N ) CONTROLLING PLAN ( 00000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

Section 5 - 12
 Credit Plan Master

RELATED FIELDS
REQUIRED Two part field that specifies down payment requirements. The
DOWN PMT first part of this field is a code that indicates whether the required
down payment is an amount or a percentage. The values are:
A = Amount (Default)
P = Percentage.

The second part of this field indicates the amount or the

percentage of the sale amount required as a down payment. Enter
an amount in whole monetary units only (no subunits). Enter a
percentage using the ending four digits only. For percentages, the
leading three digits must be zero.

Examples:
For an amount of $500.00, enter 0000500
For a percentage of 10.5%, enter 0001050

BEGINNING Beginning date on which CMS accepts purchases made under this
DATE Credit Plan Master record.

ENDING DATE Ending date on which CMS accepts purchases made under this
Credit Plan Master record. If this field is zero, the record does not
have an ending date.

MIN SALE Minimum amount of sale, excluding down payment, that can be
entered under this plan (in monetary units). If this field is set to
zero, any amount is acceptable.

MAX SALE Maximum amount of sale, excluding down payment, that you can
enter under this plan (in monetary units). If this field is set to
zero, any amount is acceptable.

 Beginning and ending dates, and minimum and maximum sale

amounts are for authorization purposes only. CMS does not
reject transactions that are entered through online entry or a
user input file if the amount is less than MIN SALE or greater
than MAX SALE.

Section 5 - 13
CMS 8.0

DEFERMENT OPTIONS

The Credit Plan Master contains parameters for deferring interest, insurance,
billing, or payments on a plan. If you defer billing on the plan, you must also
defer interest, insurance, and payments for as long as or longer than the billing
deferment.
A deferment may be defined for a number of months, days, or billing cycles, or
until a specific calendar date has been reached. In addition to specifying the type
of deferment to be used for the plan, you can indicate the following:
 The conditions that must exist for automatic cancellation of a deferment or
ITO, as well as the letter to be generated when the cancellation occurs
 The options for “rolling” (migrating) the plan’s balance to another plan when
the deferment period has ended or the deferment has been canceled
 The disposition of the interest or insurance accrued during the deferment
period.

ARMC PAGE 01

ARMC ( ) USER DEFINED TITLE PAGE 01 08/26/1999

CREDIT PLAN MASTER 10:16:34
ORG 100 PLAN NBR 10002 DATE LAST MAINT 06/28/1999
DESCRIPTION ( RETAIL PURCHASE PLAN )
PLAN TYPE ( R ) REQUIRED DOWN PMT ( A ) ( 0000000 )
RATE TBL OCCUR ( 01 ) MULTIPLE SALES ( Y )
BEGINNING DATE ( ) ENDING DATE ( )
BALANCE TRANSFER TYPE ( N ) INTEREST TABLE OVRRDE ( 001 )
GRACE DAY BALANCE ( Y ) ITO EXP ( M 001 ) ( )
MIN SALE ( 000000000 ) MAX SALE ( 000000000 )
POSTING INDICATOR ( 0 )
DEFER INT ( 000 ) ( 0 ) ( ) ( 0 ) PLAN ID ( 654 )
DEFER INS ( 000 ) ( 0 ) ( ) ( 0 ) RECORD COUNT IND ( 05 )

DFR BILL ( 000 ) ( 0 ) ( ) PRODUCT CODE ( 65498 )

DEFER PMT ( 000 ) ( 0 ) ( )
CANCEL F / LVL / LTR / PLAN /METHOD ( 0 ) ( 0 ) ( ) ( 00000 ) ( 0 )
EXPR / LTR / PLAN / METHOD ( 0 ) ( ) ( 00000 ) ( 0 )
USER CD 1 ( 000 ) USER CD 2 ( 000 ) USER CD 3 ( 000 )
USER CD 4 ( 00000 ) USER CD 5 ( 00000 ) USER CD 6 ( 00000 )
PAYMENT OPTIONS - PAYMENT TYPE ( C )
CONSOLIDATED PAYMENT ( N )
CONSOLIDATED STATEMENT ( N ) CONTROLLING PLAN ( 00000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

Section 5 - 14
 Credit Plan Master

RELATED FIELDS
DEFER INT Four part field that defines the parameters for deferred interest
credit plans. CMS does not assess interest during the deferment
period.

The first part of this field is the number of periods in the interest
deferment period. This field defaults to the Credit Plan Segment
record of deferred interest credit plans (ORIG on ARMA07).

The second part of this field is a code that indicates if the interest
deferment period is cycles, days, or months. This field defaults to
the Credit Plan Segment record of deferred interest credit plans
(PER on ARMA07). The values are:
0 = Not used (Default)
1 = Cycles
2 = Days
3 = Months.

The third part of this field is the date on which the interest
deferment ends and assessment of interest begins. This field
defaults to the Credit Plan Segment record of deferred interest
credit plans (BEGIN DATE on ARMA07).

 You can enter either the number of periods (first and second
parts) or a specific date (third part), but do not enter values in
all three parts.

The fourth part of this field is a required code that determines the
disposition of interest accrued during the interest deferment
period. The values are:
0 = No interest deferment is in effect (Default)
1 = Waive interest (interest-free)
2 = Waive all accrued interest if the credit plan is
paid out in full before the deferment expires;
bill all accrued interest if the credit plan is not
paid in full.

This field defaults to the Credit Plan Segment record of deferred

interest credit plans (DISP on ARMA07).
DEFER INS Four part field that defines the parameters for deferred insurance
credit plans. CMS does not assess insurance premiums during the

Section 5 - 15
CMS 8.0

deferment period.

The first part of this field is the number of periods in the

insurance deferment period. This field defaults to the Credit Plan
Segment record of deferred insurance credit plans (ORIG on
ARMA07).

The second part of this field is a code that indicates if the

insurance deferment period is cycles, days, or months. This field
defaults to the Credit Plan Segment record of deferred insurance
credit plans (PER on ARMA07).The values are:
0 = Not used (Default)
1 = Cycles
2 = Days
3 = Months.

The third part of this field is the date on which the insurance
deferment ends and assessment of insurance premiums begins.
This field defaults to the Credit Plan Segment record of deferred
insurance credit plans (BEGIN DATE on ARMA07).

The fourth part of this field is a required code that determines the
disposition of insurance premiums that accrue during the
insurance deferment period. The values are:
0 = No insurance deferment is in effect. (Default)
1 = Waive insurance (insurance-free)
2 = Waive accrued insurance premiums if the
credit plan is paid out in full before the
deferment expires. Bill all accrued insurance
if the credit plan is not paid in full.
3 = Assess accrued insurance at the end of the
deferment period

This field defaults to the Credit Plan Segment record of deferred

insurance credit plans (DISP on ARMA07).

Section 5 - 16
 Credit Plan Master

DFR BILL Three part field that defines the parameters for deferred billing
credit plans. CMS does not request interest, insurance premiums,
or payments during the billing deferment period.

The first part of this field is the number of periods in the billing
deferment period. This field defaults to the Credit Plan Segment
record of deferred billing credit plans (ORIG on ARMA07).

The second part of this field is a code that indicates if the billing
deferment period is cycles, days, or months. This field defaults to
the Credit Plan Segment record of deferred billing credit plans
(PER on ARMA07).The values are:
0 = Not used (Default)
1 = Cycles
2 = Days
3 = Months.

The third part of this field is the date on which the billing
deferment ends and billing begins. This field defaults to the
Credit Plan Segment record of deferred billing credit plans (BEGIN
DATE on ARMA07).

DEFER PMT Three part field that defines the parameters for deferred payment
credit plans. Purchases made during the payment deferment
period appear on billing statements, but CMS does not request
payments during the payment deferment period.

The first part of this field is the number of periods in the payment
deferment period. This field defaults to the Credit Plan Segment
record of deferred payment credit plans (ORIG on ARMA07).

The second part of this field is a code that indicates if the

payment deferment period is cycles, days, or months. This field
defaults to the Credit Plan Segment record of deferred payment
credit plans (PER on ARMA07).The values are:
0 = Not used (Default)
1 = Cycles
2 = Days
3 = Months.

The third part of this field is the date on which the payment
deferment ends and payments begin. CMS begins requesting

Section 5 - 17
CMS 8.0

payments on the first statement generated after this date. This

field defaults to the Credit Plan Segment record of deferred
billing credit plans (BEGIN DATE on ARMA07).

CANCEL F Code that controls whether credit plans generated by this Credit
Plan Master record roll over to another credit plan for contractual
or recency delinquency or when a payment is not received by the
payment due date or cycle date. The values are:
0 = Do not roll over this credit plan (Default)
1 = Roll over deferred plans for contractual
delinquency
2 = Roll over deferred plans for recency
delinquency
3 = Roll over ITO plans for contractual
delinquency
4 = Roll over ITO plans for recency delinquency
5 = Cancel and roll over for payment due and not
received by the payment due date
6 = Cancel and roll over for payment due and not
received by the cycle date.

This field must be 0 if the PLAN TYPE is B (Balance transfer for

retail credit plan), T (Balance transfer for cash credit plan), or
L (Loan credit plan). This field can be 1 or 2 only if a deferment
is defined for the Credit Plan Master record in the DEFER INT,
DEFER INS, DFR BILL, and/or DEFER PMT fields. This field can be 3
or 4 only if an Interest Table Override (ITO) is defined for the
Credit Plan Master record in the INTEREST TABLE OVERRDE field. If
this field is 1, 2, 3, or 4, the LVL field is required. If this field is 5
or 6, the PLAN and METHOD fields are required.

LVL Contractual or recency delinquency level to cancel a deferred plan

or ITO plan. The values are:
0 = Do not cancel for delinquency (Default)
1–9 = Level of contractual or recency delinquency
at which to cancel.

If the CANCEL F field is 1, 2, 3, or 4, this field is required and must

be 1–9.

LTR Code that identifies the letter in the CTA system or LTS system
that is sent upon cancellation of a deferment or Interest Table

Section 5 - 18
 Credit Plan Master

Override (ITO).

PLAN Number that identifies the Credit Plan Master record that
generates the rollover credit plan upon cancellation of a
deferment or Interest Table Override (ITO).

If the CANCEL F field is 5 or 6, this field is required and must

contain a valid plan number that identifies an existing Credit Plan
Master record.

METHOD Code that indicates the method for migrating the plan balance
from the canceled plan. The values are:
0 = Change the plan number and generate activity
recap transactions for principal and billed-
not-paid components (Default)
1 = Generate individual monetary transactions for
each component to transfer the plan balance
to the new plan. CMS resets the canceled plan
balances to zero and retains the old plan for
the number of days defined in the Logo
record (PLAN PURGE DAYS on ARML13).
2 = Generate a monetary transaction for the
principal balance to transfer the plan balance
to the new plan. CMS resets the canceled plan
balances to zero and retains the old plan for
the number of days defined in the Logo
record (PLAN PURGE DAYS on ARML13).

EXPR Code that indicates whether a deferred plan or ITO plan becomes
a regular credit plan or rolls over to another credit plan upon
expiration. The values are:
0 = Do not roll over. Deferred or ITO credit plan
becomes a regular credit plan. (Default)
1 = Roll over deferred credit plan to another
credit plan
2 = Roll over the expired ITO credit plan to
another credit plan.

If this field is 1, the PLAN and METHOD fields are required.

LTR Code that identifies the letter in the CTA system or LTS system
that is sent upon expiration of a deferred credit plan.

Section 5 - 19
CMS 8.0

PLAN Number that identifies the Credit Plan Master record that
generates the rollover credit plan upon expiration of a deferred
credit plan.

If the EXPR field is 1, this field is required and must contain a

valid plan number that identifies an existing Credit Plan Master
record.

METHOD Code that indicates the method for rolling over a deferred credit
plan that has expired. If the EXPR field is 1, this field is required.
The values are:
0 = Change the plan number and generate activity
recap transactions for principal and billed-
not-paid components (Default)
1 = Generate individual monetary transactions for
each component to transfer the plan balance
to the new plan. CMS resets the canceled plan
balances to zero and retains the old plan for
the number of days defined in the Logo
record (PLAN PURGE DAYS on ARML13).
2 = Generate a monetary transaction for the
principal balance to transfer the plan balance
to the new plan. CMS resets the canceled plan
balances to zero and retains the old plan for
the number of days defined in the Logo
record (PLAN PURGE DAYS on ARML13).

Section 5 - 20
 Credit Plan Master

REVIEW

1. True or False

Which of the following is true about a Credit Plan Master?

_____ A Credit Plan Master is a primary control record.

_____ New transactions always create a new credit plan segment.
_____ A Credit Plan Master is created for each Logo.
_____ An account can use only one Credit Plan Master per cycle.
_____ You set up interest deferment parameters on a Credit Plan Master.
_____ The Credit Plan Master sets up a new account.
_____ A major role of the Credit Plan Master is to generate credit plan segments.

2. Circle the seven of these plan types that are created by credit plan masters?

Layaway (retail) Cash

Access checks (cash) Mail order (retail)
Balance transfer (retail) Layaway ( cash)
Retail COD
Mail order (cash) Balance transfer (cash)
Closed-end installment loan Access checks (retail)

Section 5 - 21
CMS 8.0

3. Which of the following fields are associated with the following topics?

_____ MAX SALE I = Interest Options

_____ GRACE DAY BALANCE A = Authorization Options

_____ REQUIRED DOWN PMT

_____ RATE TBL OCCUR

_____ MIN SALE

_____ ENDING DATE

_____ RECORD COUNT IND

_____ INTEREST TBL OVERRDE

_____ BEGINNING DATE

_____ ITO EXP

4. What four things can you defer?

______________________________ ______________________________
______________________________ ______________________________

Section 5 - 22
 Credit Plan Master

PAYMENT TYPE

The PAYMENT TYPE code indicates the method used to calculate the minimum
payment due for credit plans generated by this Credit Plan Master record. The
value in this field defaults to the Credit Plan Segment record (PYMT TYP on
ARMA05). You can change this value at the credit plan segment level.
Depending on the payment type, the system may use additional information from
other records to perform the calculation.
Most payment types require a Repayment Table, which begins on page 02 of the
Credit Plan Master and is continued on page 03. The Repayment Table allows
you to specify up to 20 different balance ranges to be used in calculating
payments. You can also specify whether the payment calculation will be based on
an amount or a percentage.
The “Payment Processing” section of this manual contains tables listing the
payment types that are available in CMS and the information the system uses to
calculate payments for each payment type.

ARMC PAGE 01

ARMC ( ) USER DEFINED TITLE PAGE 01 08/26/1999

CREDIT PLAN MASTER 10:16:34
ORG 100 PLAN NBR 10002 DATE LAST MAINT 06/28/1999
DESCRIPTION ( RETAIL PURCHASE PLAN )
PLAN TYPE ( R ) REQUIRED DOWN PMT ( A ) ( 0000000 )
RATE TBL OCCUR ( 01 ) MULTIPLE SALES ( Y )
BEGINNING DATE ( ) ENDING DATE ( )
BALANCE TRANSFER TYPE ( N ) INTEREST TABLE OVRRDE ( 001 )
GRACE DAY BALANCE ( Y ) ITO EXP ( M 001 ) ( )
MIN SALE ( 000000000 ) MAX SALE ( 000000000 )
POSTING INDICATOR ( 0 )
DEFER INT ( 000 ) ( 0 ) ( ) ( 0 ) PLAN ID ( 654 )
DEFER INS ( 000 ) ( 0 ) ( ) ( 0 ) RECORD COUNT IND ( 05 )

DFR BILL ( 000 ) ( 0 ) ( ) PRODUCT CODE ( 65498 )

DEFER PMT ( 000 ) ( 0 ) ( )
CANCEL F / LVL / LTR / PLAN /METHOD ( 0 ) ( 0 ) ( ) ( 00000 ) ( 0 )
EXPR / LTR / PLAN / METHOD ( 0 ) ( ) ( 00000 ) ( 0 )
USER CD 1 ( 000 ) USER CD 2 ( 000 ) USER CD 3 ( 000 )
USER CD 4 ( 00000 ) USER CD 5 ( 00000 ) USER CD 6 ( 00000 )
PAYMENT OPTIONS - PAYMENT TYPE ( C )
CONSOLIDATED PAYMENT ( N )
CONSOLIDATED STATEMENT ( N ) CONTROLLING PLAN ( 00000 )
CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7
PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

Section 5 - 23
CMS 8.0

REPAYMENT TABLE

CMS uses the Repayment Table to calculate the minimum payment for the plan.
You can specify up to 20 different plan balance ranges and whether the payment is
a fixed amount or a percentage of the balance.

ARMC PAGE 02

ARMC ( ) USER DEFINED TITLE PAGE 02 08/26/1999

REPAYMENT TABLE 10:17:49

MAX BALANCE PAYMENT A/P

01 ( 00999999999999999 ) ( 000000050 ) ( A )
02 ( 00999999999999999 ) ( 000000000 ) ( A )
03 ( 00999999999999999 ) ( 000000000 ) ( A )
04 ( 00999999999999999 ) ( 000000000 ) ( A )
05 ( 00999999999999999 ) ( 000000000 ) ( A )
06 ( 00999999999999999 ) ( 000000000 ) ( A )
07 ( 00999999999999999 ) ( 000000000 ) ( A )
08 ( 00999999999999999 ) ( 000000000 ) ( A )
09 ( 00999999999999999 ) ( 000000000 ) ( A )
10 ( 00999999999999999 ) ( 000000000 ) ( A )

CURRENCY 840 NOD 2 PER ITEM NOD 2 PERCENTAGE NOD 7

PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

 The bottom of this screen displays fields that identify the

parameters for rebate plans. These fields display only if the
PLAN TYPE = L on ARMA01 and the POSTING IND = 2 on
ARMA11. These fields default from the Credit Plan Master,
unless they have been entered via a user input (AML1).

 ARMC03 is a continuation of the REPAYMENT TABLE on

ARMC02.

Section 5 - 24
 Credit Plan Master

AUTHORIZATION EXCEPTIONS

ARMC PAGE 04

ARMC ( ) USER DEFINED TITLE PAGE 04 08/26/1999

CREDIT PLAN MASTER 10:18:30
ORG 100 PLAN 00008
*------------> THESE OPTIONS ARE FOR AUTHORIZATION PURPOSES ONLY <------------*
EXCEPTION STORES INCLUDE/EXCLUDE ( )
STORE NBR STORE NBR STORE NBR STORE NBR STORE NBR
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )

PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

ARMC PAGE 05

ARMC ( ) USER DEFINED TITLE PAGE 05 08/26/1999

CREDIT PLAN MASTER 10:20:17

ORG 100 PLAN 00008

*------------> THESE OPTIONS ARE FOR AUTHORIZATION PURPOSES ONLY <------------*
EXCEPTION RESIDENCE ID MAINTENANCE INCLUDE/EXCLUDE RESIDENCE ID ( )
( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )
( ) ( ) ( ) ( ) ( ) ( ) ( ) ( ) ( )
( ) ( )

EXCEPTION LOGO MAINTENANCE INCLUDE/EXCLUDE LOGO MAINT ( )

( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 )
( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 ) ( 000 )
( 000 ) ( 000 )

EXCEPTION SKU NUMBERS INCLUDE/EXCLUDE SKU NBRS ( )

( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )
( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 ) ( 000000000 )

PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

On page 04 of the Credit Plan Master, you can limit participation in the plan by
store number. If any stores are excluded, all other stores are considered included.
If any store is included, any store not listed is considered excluded by default. On
page 05 you can further limit participation in the plan by Residence ID, Logo, or
SKU (Stock Keeping Unit) number. A space in the INCLUDE/EXCLUDE field
indicates that the option should be disregarded.

Section 5 - 25
CMS 8.0

PAYMENT APPLICATION PRIORITIES

By specifying a priority of 01 through 99 for the plan, you determine how normal
payments, overpayments, and underpayments will be applied to an account with
multiple plan segments.
The Logo record (ARML) contains three controls for payment application. The
PAYMENT HIERARCHY specifies the order in which the billed-not-paid components
of a plan segment’s balance will be satisfied within the plan. The APPLICATION
METH specifies the order in which the balances of multiple plan segments on a
single account will be satisfied based on plan priorities. The PAYMENT
APPLICATION LVL specifies the level (plan or Logo) of the priorities that will be
used. Accounts in private label retail Logos can use either the plan priorities on
the Credit Plan Master or special priorities on the Logo record. Accounts in
bankcard Logos are restricted to using the priorities on the Credit Plan Master.

ARMC PAGE 06

ARMC ( ) USER DEFINED TITLE PAGE 06 08/26/1999

CREDIT PLAN MASTER 10:20:41

ORG 100 PLAN 00008

ACT RECAP CONTROL RPT 1 DTL RPT 2 DTL RPT 3 DTL RPT 4 DTL
( 000 ) ( N ) ( 000 ) ( N ) ( 000 ) ( N ) ( 000 ) ( N )

INSURANCE I/E PRD 1 PRD 2 PRD 3 PRD 4 PRD 5 PRD 6

( ) ( ) ( ) ( ) ( ) ( ) ( )

PMNT PRI/CNTRL - NORMAL ( 03 ) ( F ) OVER ( 03 ) ( F ) UNDER ( 03 ) ( F )

AMORTIZATION TABLES
PRINCIPAL 000 INTEREST 000 INSURANCE 000
USER FEE 1 000 USER FEE 2 000
USER FEE 3 000 USER FEE 4 000
USER FEE 5 000 USER FEE 6 000
STLMT SYSTEM DATE LTR ( AAA ) STLMT SELECTED DATE LTR ( BBB )

PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

Section 5 - 26
 Credit Plan Master

RELATED FIELDS
PMNT PRI/CNTRL

NORMAL Two part field that indicates the priority for assigning normal
payments to multiple credit plans on the same account. A payment
is considered normal when the amount paid equals the amount
requested.

OVER Two part field that indicates the priority for assigning over
payments to multiple credit plans on the same account. A payment
is considered an over payment when the amount paid is greater
than the amount requested.

UNDER Two part field that indicates the priority for assigning under
payments to multiple credit plans on the same account. A payment
is considered an under payment when the amount paid is less than
the amount requested.

The first part of this field is a priority number. The values are 00–
99. The value 01 indicates the highest priority, 02 the next
highest, and so on until 99, which is the lowest priority.

The second part of this field is a code that indicates the priority
for credit plans with the same priority number. The values are:
F = FIFO (First in, first out by plan open date)
L = LIFO (Last in, first out by plan open date)
D = FIFO for deferred plans (First in, first out by
interest, insurance, billing, or payment start
date)
E = LIFO for deferred plans (Last in, first out by
interest, insurance, billing, or payment start
date).

Section 5 - 27
CMS 8.0

USER INFORMATION FIELD LABELS

ARMC PAGE 07

ARMC ( ) USER DEFINED TITLE PAGE 07 08/26/1999

PLAN USER INFORMATION 10:21:14

ORG 100 PLAN 00008

USER DATES
USER DATE 1 ( USER DT 1 )
USER DATE 2 ( USER DT 2 )
USER DATE 3 ( USER DT 3 )
USER DATE 4 ( USER DT 4 )

USER AMOUNTS
USER AMOUNT 1 ( USER AMT 1 )
USER AMOUNT 2 ( USER AMT 2 )
USER AMOUNT 3 ( USER AMT 3 )
USER AMOUNT 4 ( USER AMT 4 )

USER CODES
USER CODE 1 ( USER CD 1 )
USER CODE 2 ( USER CD 2 )
USER CODE 3 ( USER CD 3 )
USER CODE 4 ( USER CD 4 )

PF1=ARMU PF2=ARMG PF3=ARMI PF4=ARMF PF5=ARMX PF6=INQUIRY

On ARMC07, you can assign field labels (literals) to the user defined dates,
amounts, and codes that appear on the credit plan segment (ARMA).

Notes___________________________________________

Section 5 - 28
 Credit Plan Master

AMORTIZATION PARAMETERS AND CLOSED-END LOAN DETAIL

On page 06 of the Credit Plan Master, you can indicate whether pre-computed
interest, insurance, and fees (as well as principal) will be amortized over the life
of a loan.
Pages 08 and 09 of the Credit Plan Master will display only when the PLAN TYPE
is L. Use these pages to define the duration of the loan in months, early
settlement rebates and penalties, whether or not various fees will be billed to the
plan, and when the plan is in a state of “imbalance.”

REFERENCE LIST

ONLINE

 ARMA - Credit Plan Segment

 ARMC - Credit Plan Master

REPORTS

 R03 - Credit Plan Master Maintenance

Notes___________________________________________

Section 5 - 29
CMS 8.0

REVIEW

1. How many account balance ranges can be defined on the Repayment Table?
______________________________

2. Circle the valid minimum payment calculations controlled by the Credit Plan
Master.

A. Payment application method B. Payment history

C. Minimum payment amount D. Payment type

3. Circle the valid exception criteria on the Credit Plan Master.

Org Logo
SKU Merchant category
Insurance product Store
Interest table Frequent shopper program
Residence ID Field security code

4. Page 06 contains payment application priorities for what three kinds of payments?
Strike out the invalid option.

Over Average Under Normal

5. Is this statement True or false?

CMS always uses the payment priority options on page 06 of the Credit Plan
Master and the payment application method on the Logo record to apply payments.

_______________

Section 5 - 30